I’m not sure how credible this is, but it is food for thought – especially about the consequences. I’ve known for several years now that being in debt was bad, personally and nationally. Now, it seems that I may have been far more right than I previously thought.
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Why America & Britain are unable to Withdraw from IRAQ
Back on December 16th, I wrote a long diatribe about the need to begin making the USA debt free, and that begins with making ourselves as individuals debt free. I’ve been researching this for the last 2 years, and have found some very usefull online resources that will help each and every one of us do just that – Barbara & I have already done it.
The very first thing you need to do is re-think your consumer debt. Basically, don’t use credit for anything. Why pay someone else 6% interest (or up to 24% on some credit cards) when the most you can earn in a savings account is 1.25%???? You automatically give yourself a net pay raise by just eliminating the drain of interest charges!
Next, make sure that you are “paying yourself first” every payday. That means that you are taking at least 5% of your GROSS pay (not net, or after-tax) and putting it aside for your future well-being. You don’t spend it for anything – this will be the money you use for your investments, once there is enough there to start investing. When you become debt free, increase this to at least 10% of your Gross income, and when your finances are better off, I’ve heard of people who pushed it up over 40%. It should be as much as you can comfortably afford to make it, but never less than 5% to start with. This isn’t the money put into Social Security for you by the government, either. This is money YOU set aside, YOU control, and YOU invest. This is about YOU being responsible for YOUR future.
Now, when you have money to invest, what do you do with it? Well, I have a few sources I’ve looked to over the past 3 years that have proven to be far more valuable than all the books, tapes, and self-help seminars put together. These sources are self-made multi-millionaires who made their money entirely by investing. I include contact info below so that you can check them out yourselves.
The first I would recommend is called “Early To Rise” – yes, it’s a daily, and it is edited by Michael Masterson.
To BECOME AN EARLY TO RISE MEMBER, please visit: http://www.earlytorise.com or email support@earlytorise.com
The next is called “Investment U” – and is edited by Dr. Steve Sjuggerud (the Dr. is because he has a doctorate in economics – not an M.D.)
Dr. Steve Sjuggerud is the editor of Steve Sjuggerud’s True Wealth and has been a member of the OC Investment Advisory Panel for more than six years. http://www.InvestmentU.com
If you would like more info about True Wealth: http://www.truewealth.com/
Good luck on making your dreams come true!
Oh, no! Vernon’s been thinking again! LOL!
Well, here is what I’ve been thinking about.
When the US War of Independence was over, we were a new country with no political clout, no established economy, nothing. Only 16% (approx.) of those who could have fought to win our independence actually did help win it – which might indicate that a lot more people preferred to remain a British colony than wanted freedom.
Yet, despite those odds, within 75 years under our Constitution, we were the dominate economic and political force in the world. Our Constitution mandated a minimal debt which had to be paid off quickly – even including our war debts, we were never in debt for long and not by very much money. No money was legal that was not directly exchangeable for gold or silver (except for copper pennies). Money and prosperity abounded for those who knew how to manage their own finances, and work was plentiful for those who had to rely on being of value to others instead of running their own enterprises.
Then came the Civil War, which began with President Lincoln trashing the US Constitution. Historians still don’t entirely agree on what caused the Civil War, but I’m sure slavery was only an after-thought to Lincoln. Only 5% (or about that) of the people in the north were abolitionists (anti-slavery) and the Emancipation Proclomation specifically excluded any geographical location that was controlled by the north at the time it was issued, so Lincoln wasn’t really interested in freeing the slaves. So, what did he accomplish? He divided the loyalty of the southern troops, who now had two major issues to worry about. The first was protecting their right to choose their own system of government (something the US Constitution encourages). The second was fearing for the lives of their wives, sisters, mothers, and children back at home, undefended against robbing, looting, assaults, and worse that might be committed by newly freed and unemployed blacks in the south. It was that divided loyalty that allowed the north to win the war.
Now, I’m not wanting to get into any big debate over the merits of the north winning the war, this is about the results to our economy.
Since the Civil War, the US has been on a long, gentle decline. It has been gradual, it has been subtle, yet it has resulted in our becomming the #1 debter nation of the world. Our government is bigger than any other, and owes more money than any other, and the population of our citizens owe more private debt than any other nation’s citizens. Here is the scarry part: some of the top financial/investment advisors of our country have warned repeatedly in the last year that if foreign confidence in the US Dollar were to slip, the US would be unable to pay it’s debts and would lead the crash that would result in a GLOBAL depression which would make the 1930’s seem like a mild recession.
It seems to me that we have very few options – and only one that is safe. GET OUT OF DEBT. Start by getting rid of all personal/business debt that you control. Once you have achieved that goal (my wife and I have – it took us 3 years) then the next step is to begin pooling our voices with other debt-free citizens to demand that Washington pay off our national debts – in FULL. This would include eliminating corporate and private welfare, and severely downsizing our governmental payrol, but it needs to be done. It also includes elimination of the national Social Security program. Let’s face it, nobody has an inherrent “right” to quit working and live a life of leisure. It’s not in the Bible, the Constitution, or any moral guide I’ve ever seen. So, let’s square our social practice with natural law – if you don’t actively seek to create the means to “retire” – you have created the need to keep working to care for yourself. Our government should not be in the business of doing your planning for you – as proven by the fact that it’s best planning can’t provide the average worker with enough to live on without supplemental income after they “retire”.
If we don’t do it (reorgainize our national priority and get rid of our debts) ourselves, the foreign nations who hold the notes on our debts will eventually be forced to do it for us – and we probably won’t like some of the strings attached to their management of our affairs. Take a guess who holds more of our debt notes than any other coutry in the world?
Go on, take a guess!
Well, if my sources are correct, the answer is – – – Red China! Now, if they were forced to foreclose on our notes, what do you think would happen to our Constitution, the Bill of Rights, or our representative form of governemnt??????
It’s time to start working on a debt-free USA.
Vernon Pope 